Due to the recent increase in the amount of real-time transactions and the amount of on-demand purchasing, consumers have come to expect near-instant gratification. As a result, merchants, issuers, and payment card companies are not provided much time to determine whether a transaction is potentially fraudulent. Often, a transaction is authorized within seconds. With such a small window of time for review, it is difficult for merchants to ensure that purchases are not being made by scammers or fraudsters buying with stolen credit card information. Adding to this pain is that chargebacks and fees associated therewith can be charged weeks or even months after the transaction.
To make purchasing even easier, recently businesses and consumers have been turning to digital wallets. A digital wallet may be installed on a user's device and may store payment information and passwords for numerous payment methods (e.g., payment cards) and websites. Through the use of a digital wallet, a user can complete in-store purchases easily and quickly with near-field communication. A user may also easily complete remote purchases online without having to remember and input specific details such as usernames, passwords, contact information, and the like. By storing all of a consumer's payment information compactly, digital wallets largely eliminate the need to carry a physical wallet. Also, digital wallets are a potential benefit to companies that collect consumer data. The more companies know about their customers' purchasing habits, the more effectively they can market to them.
Most digital wallets allow a consumer the ability to store more than one payment card within the digital wallet. Furthermore, a consumer is typically able to store more than one digital wallet on their mobile device. While individual payment cards have fraud identification systems capable of detecting potential fraud involving a particular payment card, the fraud identification systems are typically not aware of whether the payment card is included in a digital wallet, and if so, whether there are other payment cards included within the digital wallet. When an attacker gains access to a user's digital wallet, all payment cards included therein may be compromised. However, the fraud systems of a first payment card having a first card scheme and/or a first issuer are typically unaware of fraud occurring with a second payment card included in the digital wallet having a different card scheme and/or issuer. That is, even if a fraud detection system detects a potential attack or fraud associated with one of the payment cards, the fraud detection system has no way of informing the providers of other payment cards included in the digital wallet that their cards might be compromised. Furthermore, not all merchants are enrolled in a secure code program and cannot enforce a user authentication check with respect to the wallet. Therefore, a system for improving global wallet security is needed.
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